Bally to send ‘past due’ refunds to former members

California-based Bally Total Fitness Corp. on Tuesday signed a judgment with the Texas Attorney General’s Office that prohibits Bally from continuing to send its former members misleading “past-due” mailings. Under the agreement, Bally must provide refunds to Texans who were deceived into paying fees they did not actually owe.

Bally operates 24 fitness centers in and around the San Antonio, Dallas and Houston areas. The Attorney General’s Office said that between summer 2009 and March 2010, Bally mailed more than 11,000 misleading “past due” collection notices to former customers in an attempt to encourage them to rejoin their former gym. The collection notices created the false impression that former members owed Bally outstanding membership fees. The improper notices were actually an attempt to get former members to renew their memberships.

According to records obtained by the State, more than 1,000 Texans made payments to Bally after receiving the improper past-due collection notices. Under Tuesday’s agreement, Bally will send out settlement notices to customers who are automatically eligible for restitution. Any customers who do not receive a notice but believe they are entitled to restitution should file a complaint with the Attorney General’s Office.